Cello World Ltd, a prominent household consumer products company, has submitted draft documents to Sebi for an IPO seeking to raise Rs 1,750 crore. The IPO will be entirely comprised of a sale of shares, including contributions from key shareholders: Pradeep Ghisulal Rathod (up to Rs 300 crore), Pankaj Ghisulal Rathod (up to Rs 670 crore), Gaurav Pradeep Rathod (up to Rs 380 crore), Sangeeta Pradeep Rathod (up to Rs 200 crore), Babita Pankaj Rathod and Ruchi Gaurav Rathod (up to Rs 100 crore each). Gaurav Pradeep holds a 25.73 percent stake, Pankaj Ghisulal holds 16.24 percent, and Pradeep Ghisulal holds 12.86 percent in the company. Cello World, headquartered in Mumbai and competing with brands like Milton, La Opala, and Borosil, is backed by ICICI Venture, the investment arm of ICICI Bank. The IPO is managed by Kotak Mahindra Capital, ICICI Securities, JM Financials, Motilal Oswal Securities, and IIFL Securities.
Founded by the Rathod family, the Cello Group embarked on its journey in 1967 in Mumbai with a modest start. It established a small factory focused on crafting plastic PVC footwear and bangles. Over the years, the company has diversified its offerings, spanning from drinkware, opalware, and kitchen appliances to cleaning aids, bathroom accessories, and sanitizers. Its clientele includes hotels, restaurants, catering services, and beyond.
As of March 2023, the company boasts an extensive portfolio of 15,841 distinct stock keeping units across various product categories. It operates and oversees 13 manufacturing facilities across five locations within India. This robust infrastructure enables an annual production capacity of 57.77 million units of consumer houseware items, 15,000 tonnes of opalware and glassware, 650.00 million units of writing instruments and stationery, as well as 12.80 million units of molded furniture and related products.
In the financial year 2022-2023, Cello Group’s revenue surged to Rs 1,796.70 crore, marking a significant rise from Rs 1,359.18 crore in the previous year. Concurrently, the net profit demonstrated growth, reaching Rs 285.07 crore compared to Rs 219.52 crore previously. However, the EBITDA margin saw a slight decrease, declining to 24.34 percent from the prior year’s 25.71 percent. Notably, the company managed to reduce its net debt over the year, with the figure dropping to Rs 304.49 crore from the previous Rs 426.64 crore.